CH10 GBA490 Test3

1. (p. 317) Business ethics concerns A. Developing a consensus among companies worldwide as to what ethical principles that businesses should be expected to observe in the course of conducting their operations B. What ethical behaviors should be expected of company personnel in the course of doing their jobs C. The application of general ethical principles and standards to the actions and decisions of companies and the behavior of company personnel D. Developing a special set of ethical standards for businesses to observe in conducting their affairs E. Picking and choosing among the consensus ethical standards of society to arrive at a set of ethical standards that apply directly to operating a business

2. (p. 317) Ethical principles in business A. Deal chiefly with the actions and behaviors required to operate companies in a socially responsible manner B. Deal chiefly with the rules each company's top management and board of directors make about "what is right" and "what is wrong." C. Are not materially different from ethical principles in general D. Are generally less stringent than the ethical principles for society at large E. Are generally more stringent than the ethical principles for society at large

3. (p. 317) Ethical principles as they apply to business conduct and business decisions A. Deal chiefly with standards a company has (and that are elaborated in its code of ethics) about what is right and wrong insofar as the conduct of its business is concerned and about what behaviors are expected of company personnel B. Deal chiefly with the behaviors that a company's board of directors expects of all company personnel in both their conduct on-the-job and their conduct off-the-job C. Involve the rules a company's top management and board of directors make about "what is right" and "what is wrong." D. Are not materially different from ethical principles in general E. Are generally less stringent than the ethical principles for society at large because it is well understood that businesses should not be expected to operate any differently than what the law requires of them

4. (p. 318) Notions of right and wrong, fair and unfair, moral and immoral, ethical and unethical A. Vary enormously from religion to religion and country to country across the world B. Are present in all societies, organizations and individuals; some of the most important concepts of what is right and what is wrong (being truthful, integrity of character, not cheating or stealing, treating people with dignity and respect) resonate with people of most cultures and religions and are thus universal C. Ultimately depend on the circumstances—nothing is really black or white when it comes to ethical standards D. Are governed mainly by the thinking and writings of religious clerics at the School of Morally Correct Thinking and Behavior in Geneva, Switzerland E. Ultimately depend on a person's own values and beliefs

5. (p. 318) The contentions that (1) many of the same standards of what's ethical and what's unethical resonate with peoples of most societies regardless of local traditions and cultural norms and (2) to the extent there is common moral agreement about right and wrong actions, common ethical standards can be used to judge the conduct of personnel at companies operating in a variety of country markets and cultural circumstances are defining beliefs of A. The school of ethical relativism B. The school of ethical universalism C. Integrated social contracts theory D. The School of Morally Correct Thinking and Behavior in Paris, France E. The Global Code of Ethical and Social Morality developed in 1925 at a worldwide convention of distinguished religious clerics

6. (p. 319) The contention that since different societies and cultures have divergent values and standards of right and wrong it is appropriate to judge behavior as ethical/unethical in the light of local customs and social mores rather than according to a single set of ethical standards A. Defines what is meant by "ethical relativism." B. Defines what is meant by "ethical universalism." C. Is the foundation of integrated social contracts theory D. Is the basis for the theory of ethical variation E. Is the guiding principle of the Global Code of Ethical and Social Morality created by the United Nations

7. (p. 322) The contention that ethical standards should be governed both by (1) a limited number of universal ethical principles that are widely recognized as putting legitimate ethical boundaries on actions and behavior in all situations and (2) the circumstances of local cultures, traditions and shared values that further prescribe what constitutes ethically permissible behavior and what does not are the basic principles of A. The school of ethical relativism B. The school of ethical universalism C. Integrated social contracts theory D. The School of Morally Correct Thinking and Behavior based in Rome, Italy E. The Global Code of Ethical and Social Morality developed by the United Nations

8. (p. 318) The school of ethical universalism holds that A. Concepts of right and wrong are absolute and leave no room for deviation from country to country or circumstance to circumstance B. Concepts of right and wrong are universal within countries but not across countries and cultures C. Concepts of right and wrong are governed by the Global Code of Ethical and Social Morality D. Some concepts of what is right and what is wrong resonate with peoples of most societies regardless of local traditions and cultural norms—hence common ethical standards can be used to judge the conduct of personnel at companies operating in a variety of country markets and cultural circumstances E. All societies and countries apply essentially the very same set of universally-defined ethical principles of right and wrong in judging individual behavior

9. (p. 318) According to the school of ethical universalism, A. Concepts of what constitutes ethical behavior and unethical behavior are dictated by subjectively-provable moral principles but not by objectively-provable moral principles B. Concepts of right and wrong are universal within countries/societies but not across countries or cultures C. Concepts of what is ethical and what is unethical are universal and absolute, leaving no room for deviation from country to country or circumstance to circumstance D. To the extent there is common moral agreement about right and wrong actions and behaviors across multiple cultures and countries, there exists a set of universal ethical standards to which all societies, all companies and all individuals can be held accountable E. All societies and countries are obligated to apply universally-defined ethical principles of right and wrong as set forth in the Global Code of Ethical Behavior adopted by 150 nations of the world

10. (p. 318) According to the school of ethical universalism, A. Universal ethical principles or norms put limits on what actions and behaviors fall inside the boundaries of what is right and which ones fall outside—such universal norms include honesty or trustworthiness, respecting the rights of others, practicing the Golden Rule, avoiding unnecessary harm to workers or to the users of the company's product or service and respect for the environment B. All societies and countries are obligated to apply universally-defined ethical principles of right and wrong as set forth in the Global Code of Ethical and Social Morality (which is subscribed to by 150 nations of the world) C. All societies and countries apply essentially the very same set of universally-defined ethical principles of right and wrong in judging the ethical correctness of business behavior D. It is only fair that the standards of what's ethical and what's unethical be applied universally to all businesses in all countries irrespective of local business traditions and local business norms E. The standards of what constitutes ethical and unethical behavior in business situations are partly universal, but in the main are governed by local business norms

11. (p. 318) If one concurs with the school of ethical universalism, then one believes that A. Many basic moral standards travel well across cultures and countries and really do not vary significantly according to local cultural beliefs, social mores, religious convictions and/or the circumstances of the situation B. Since ethical standards are subjectively-determined rather than objectively-determined, each company has a window within which it can define and implement its own ethical principles of right and wrong C. What is deemed right or wrong, fair or unfair, moral or immoral, ethical or unethical in business situations should be judged in light of local customs and social mores and can legitimately vary from one culture or nation to another D. Each country should have some degree of latitude in setting its own ethical standards for judging the ethical correctness of business actions/behaviors within its borders E. Concepts of right and wrong as they apply to business behavior are always varying shades of gray, never absolute (i.e. black or white)

12. (p. 318) The strength of the beliefs underlying ethical universalism is that A. Ethical universalism recognizes the obvious—basic moral standards vary significantly according to local cultural beliefs, local religious beliefs and social mores B. Ethical standards are objectively-determined by religious and moral experts C. What is deemed right or wrong, fair or unfair, moral or immoral, ethical or unethical is (or should be) grounded in religious doctrine and applied strictly to all business situations D. It draws upon the collective views of multiple societies and cultures to put some clear boundaries on what constitutes ethical business behavior and what constitutes unethical business behavior no matter what country market or culture a company or its personnel are operating in E. It leaves no room for thinking that concepts of right and wrong can be varying shades of gray— they are always absolute and unambiguous

13. (p. 319) The school of ethical relativism holds that A. What constitutes ethical or unethical conduct varies according to the religious convictions of each society or each culture within a country B. When there are cross-country or cross-cultural differences in what is deemed fair or unfair, what constitutes proper regard for human rights and what is considered ethical or unethical in business situations, it is appropriate for local moral standards to take precedence over what the ethical standards may be elsewhere C. Concepts of right and wrong are always governed by business norms in each country, culture or society D. Concepts of right and wrong are always a function of each individual's own set of values, beliefs and ethical convictions E. Concepts of right and wrong as they apply to business behavior are always varying shades of gray, never absolute (i.e. black or white)

14. (p. 319) According to the school of ethical relativism, A. Concepts of ethically right and ethically wrong are relative across countries and cultures but are universal within countries or cultures B. Individuals and businesses have a basic right to "moral free space" and that it is inappropriate to specify ethically permissible and ethically impermissible actions and behaviors C. There are important occasions when local cultural norms and the circumstances of the situation determine whether certain behaviors are right or wrong D. Concepts of right and wrong as applied to business situations are always a function of each company's own set of values, beliefs and ethical convictions (as stated in the company's code of ethical conduct) E. Standards of what is ethically right and ethically wrong as applied to business behavior are determined solely by whatever business norms prevail in a particular country/culture/society and these business norms are certain to vary across countries/cultures/societies

15. (p. 319) According to the advocates of ethical relativism, A. If the use of underage labor and/or the payment of bribes/kickbacks are acceptable in a particular culture/society/country, then a case can be made that it is morally correct and ethical for a company to use underage labor or pay bribes/kickbacks in conducting its business activities in that culture/society/country B. Each company should have the flexibility to set its own standards for deciding whether the use of underage labor and/or the payment of bribes/kickbacks are ethically acceptable or not C. If the use of underage labor and/or the payment of bribes/kickbacks are legal in a particular country, then it is morally correct and ethical for a company to use underage labor in conducting its business activities in that country, no matter what the legality of using underage labor or paying bribes/kickbacks happens to be in other countries D. Each industry should have the flexibility to set its own standards for deciding whether the use of underage labor and/or the payment of bribes/kickbacks are ethically acceptable or not E. It is very clear that the use of underage labor or the payment of bribes and kickbacks are ethically impermissible—local customs, behavioral norms and traditions absolutely cannot be taken into account

16. (p. 319) A belief in ethical relativism leads to the conclusion that A. Since ethical standards are subjective, it is perfectly appropriate for each company to define and implement its own ethical principles of right and wrong as concerns the use of underage labor and the payment of bribes and kickbacks B. Ethical standards are determined objectively (rather than subjectively) C. Whether the use of underage labor and the payment of bribes/kickbacks should be deemed ethical or unethical depends on the moral standards, values, beliefs, convictions and business norms that prevail in particular cultures, societies, countries or circumstances D. Ethical standards are objective and universal—thus whether the use of underage labor and the payment of bribes and kickbacks should be deemed ethical or unethical definitely is not dependent on the moral standards, values, beliefs, convictions and business norms that prevail in particular cultures, societies, countries or circumstances E. Standards of right and wrong are governed by what is legal in a given country—thus whether the use of underage labor and the payment of bribes and kickbacks is ethical or unethical is governed by local law

17. (p. 319 - 321) If one accepts the tenets of the school of ethical relativism, then it follows that A. There are multiple sets of ethical standards rather than a single universal set B. At least some ethical standards are governed by local norms, religious doctrines and social customs rather than by absolute standards of right and wrong C. What constitutes ethical or unethical behavior on the part of businesses must in some cases be judged in the light of local customs and social mores D. It is inappropriate to hold businesses accountable for observing a universal set of ethical standards E. All of the above

18. (p. 321) Companies that adopt the principle of ethical relativism in providing ethical guidance to company personnel A. Base their standards of what is ethical and what is unethical on the Global Code of Ethical Conduct first developed in 1935 and since subscribed to by the governments of 180 countries B. Quickly find themselves on a slippery slope with no higher order moral compass if they operate in countries where ethical standards vary considerably from country to country C. Have no fair way to judge the ethical correctness of the conduct of company personnel D. Have a one-size-fits-all set of ethical standards E. End up allowing each company employee to determine what set of ethical standards to observe

19. (p. 319) According to the ethical relativism school of thinking, A. There can be no one-size-fits-all set of authentic ethical norms against which to gauge the conduct of company personnel B. A company should have a different set of ethical standards for each country in which it operates C. Only respected religious experts can provide companies with a higher order moral compass D. The best source of ethical standards in each country where the company operates is that country's adopted Code of Required Ethical Conduct E. Since there can be no one-size-fits-all set of authentic ethical norms it is appropriate for each company to hold company personnel to observing the company's code of ethical conduct

20. (p. 319) Paying bribes and kickbacks to grease business transactions A. Violates ethical principles of right and wrong in all countries B. Is ethically acceptable according to the principle of ethical universalism and ethically unacceptable according to the principle of ethical relativism C. Is acceptable to immoral managers but not to amoral managers D. Is one of the thorniest ethical problems that multinational companies face because paying bribes is normal and customary in some countries and ethically or legally forbidden in others E. Is more acceptable in dealing with a company's suppliers than in dealing with a company's customers

21. (p. 319 - 320) Multinational companies that forbid the payment of bribes and kickbacks in their codes of ethical conduct and that are serious about enforcing this prohibition A. Are generally advocates of the ethical relativism school of thought B. Are misguided in their efforts because bribes and kickbacks are really no different from tipping for service at restaurants—whether you tip for service at dinner or make payments to government officials to get goods through customs or give kickbacks to customers to retain their business, you pay for a service rendered C. Still have considerable difficulty in preventing the payments of bribes and kickbacks when such payments are entrenched as normal and customary in locations where they do business D. Are out-of-step with business reality given that the preponderance of company managers are immoral E. Are in a distinct minority compared to companies that view the payment of bribes and kickbacks as a legitimate or permissible practice

22. (p. 319 - 322) Which one of the following statements about the ethical relativism school of thinking is false? A. In a multinational company, application of ethical relativism equates to multiple sets of ethical standards B. There are few absolutes when it comes to business ethics and thus few ethical absolutes for consistently judging a company's conduct in various countries and markets C. The best and fairest way for a multinational company to approach the enforcement of ethical standards companywide is to reject ethical universalism and pursue ethical relativism D. A company that adopts the principle of ethical relativism and holds company personnel to local ethical standards necessarily assumes that what prevails as local morality is an adequate guide to ethical behavior—this assumption is ethically dangerous E. According to the ethical relativism school of thinking, a "one-size-fits-all" template for judging the ethical appropriateness of business actions and the behaviors of company personnel does not exist

23. (p. 322) According to integrated social contracts theory, the ethical standards a company should try to uphold A. Are governed by the school of ethical universalism B. Are governed both by (1) a limited number of universal ethical principles that are widely recognized as putting legitimate ethical boundaries on actions and behavior in all situations and (2) the circumstances of local cultures, traditions and shared values that further prescribe what constitutes ethically permissible behavior and what does not—but universal norms always take precedence over local ethical norms C. Are governed by each country's Code of Required Ethical Conduct—which sets forth that each individual/group/business/organization has a "social contract" to observe the ethical and moral standards that the country has adopted D. Should be determined by the company's moral managers E. Should never be absolute but rather always provide some wiggle room according to the circumstances of the situation

24. (p. 322 - 323) According to integrated social contracts theory, A. Universal ethical principles apply in those situations where most all societies—endowed with rationality and moral knowledge—have common moral agreement on what is wrong and thereby put limits on what actions and behaviors fall inside the boundaries of what is right and which ones fall outside B. Commonly held views about what is morally right and wrong form a "social contract" (or "contract with society") that is binding on all individuals, groups, organizations and businesses in terms of establishing right and wrong and in drawing the line between ethical and unethical behaviors C. Universal ethical principles or norms leave some "moral free space" for the people in a particular country (or local culture or even a company) to make specific interpretations of what other actions may or may not be permissible within the bounds defined by universal ethical principles D. Universal ethical norms always take precedence over local ethical norms E. All of the above

25. (p. 322 - 323) Which one of the following is not a key element of integrated social contracts theory? A. Universal ethical principles apply in those situations where most all societies—endowed with rationality and moral knowledge—have common moral agreement on what is wrong and thereby put limits on what actions and behaviors fall inside the boundaries of what is right and which ones fall outside B. Commonly held views about what is morally right and wrong form a "social contract" (contract with society) that is binding on all individuals, groups, organizations and businesses in terms of establishing right and wrong and in drawing the line between ethical and unethical behaviors C. Universal ethical principles or norms leave some "moral free space" for the people in a particular country (or local culture or even a company) to make specific interpretations of what other actions may or may not be permissible within the bounds defined by universal ethical principles D. Universal ethical norms always take precedence over local ethical norms E. Integrated social contracts theory rejects the slippery slope of ethical relativism and embraces ethical universalism

26. (p. 322) Integrated social contracts theory maintains that A. There is no such thing as "moral free space"—all ethical standards are determined by societal norms and individuals have an implied social contract to live up to these standards B. Few nations or cultures have common moral agreement on what is ethically right and wrong C. There should be no absolute limits put on what actions and behaviors fall inside the boundaries of what is ethically or morally right and which actions/behaviors fall outside D. Universal ethical norms always take precedence over local ethical norms E. Each country/culture/society has commonly held views about what constitutes ethically appropriate actions/behaviors; these common standards of what is ethical and what is not combine to form a "social contract" that all individuals in that country/culture/society are obligated to observe

27. (p. 322) The strength of integrated social contracts theory is that it A. Correctly recognizes all soundly-reasoned ethical standards are universal B. Accommodates the best parts of ethical universalism and ethical relativism C. Puts no absolute limits on what actions and behaviors fall inside the boundaries of what is ethically or morally right and which actions/behaviors fall outside D. Recognizes the importance of allowing local ethical norms to always take precedence over universal ethical norms E. Recognizes that individuals and businesses have a basic right to "moral free space" and that it is inappropriate to specify ethically permissible and ethically impermissible actions and behaviors

28. (p. 323 - 324) The three categories of managers that stand out with regard to the beliefs and commitments they have to ethical and moral principles in business affairs are: A. Ethical managers, socially responsible managers and crooked managers B. Mostly ethical managers, somewhat unethical managers and ethically corrupt managers C. Ethically-principled managers, ethically-unprincipled managers and ethically-neutral managers D. Moral managers, amoral managers and immoral managers E. Ethically responsible managers, ethically irresponsible managers and ethically unconcerned managers

29. (p. 323 - 324) The categories of managerial morality include: A. Honorable managers, dishonorable managers and totally corrupt managers B. Mostly ethical managers, somewhat ethical managers and totally unethical managers C. Ethically-principled managers, ethically-unprincipled managers and if-it-is-legal-then-it-is- ethical managers ( the latter type of manager believes that ethics don't really apply to business— their view is that anything that is legal is also ethical) D. Managers with lots of integrity, managers with some integrity and managers with no integrity E. Moral managers, immoral managers and amoral managers

30. (p. 323) Moral managers A. Are ethically principled B. See themselves as stewards of ethical behavior and believe it is important to exercise ethical leadership C. Pursue success within the letter and spirit of what is considered ethical and legal D. View what is legal as the ethical minimum and have a habit of operating at well above what the law requires E. All of the above

32. (p. 324) An immoral manager is one who A. Is ethically-principled most of the time but who might stoop to unethical behavior if there's low risk of discovery and the action or decision has a sizable positive effect on company profitability B. Has no regard for so-called ethical standards in business and pays no attention to ethical principles in making decisions and conducting the company's business—an immoral manager is driven by greed and self-gain and won't hesitate to violate ethical principles if it is in his/her best interest to do so C. Is ethically unprincipled but nonetheless usually observes ethical standards for fear of get caught and fired D. Believes that ethical standards violate the principle of moral free space and therefore are illegitimate E. Strongly believes that it is ethical to do whatever is legal

33. (p. 324) An intentionally amoral manager is one who A. Is ethically-principled most of the time but who knowingly and willingly stoops to unethical behavior if there's low risk of discovery and the action or decision has a sizable positive effect on company profitability B. Deliberately and maliciously violates ethical principles on a regular basis C. Believes business and ethics are not to be mixed because different rules apply in business as compared to other realms of life D. Views the observance of high ethical standards (doing more than what is required by law) as too Sunday-schoolish for the tough competitive world of business, even though observing some higher ethical considerations may be appropriate in life outside of business E. Strongly believes that whatever is legal is also ethical

34. (p. 324) An unintentionally amoral manager is one who A. Is ethically-principled most of the time but who is also prone to being unethical when there's low risk of being discovered and/or it is in their best interests B. Holds firmly to the view that anything goes, so long as actions and behaviors are not clearly ruled out by prevailing legal and regulatory requirements C. Strongly believes in the integrated social contract theory approach to ethics in business D. Strongly believes in ethical relativism E. Strongly believes in ethical universalism

35. (p. 325) The best available evidence indicates that the average manager in the whole population of managers is A. Ethically corrupt B. Ethically amoral most of the time but may slip into a moral or immoral mode based on a variety of impinging factors and circumstances C. Mostly ethical D. Ethically moral and is fairly steadfast in taking ethically correct positions E. Ethically immoral and unprincipled, especially when the chances of being discovered are slim; however, in public, the average manager is prone to give every appearance of being ethically principled and to profess support for ethically correct behavior

36. (p. 324 - 325) By some accounts, the population of managers is said to be A. Distributed among moral, immoral and amoral managers in a bell-shaped curve, with immoral managers and moral managers occupying the two tails of the curve and amoral managers, especially the intentionally amoral managers, occupying the broad middle ground B. Composed of mostly ethically moral managers but perhaps a third of all managers slip into an immoral or unethical mode in certain circumstances C. About 15% highly ethical, 50% mostly ethical and 35% ethically corrupt D. About 20% highly ethical, 60% mostly ethical and 20% mostly unethical E. About one-third highly ethical, one-third mostly ethical and one-third mostly unethical

37. (p. 325) Based on data from the Global Corruption Report sponsored by Transparency International, A. Corruption in emerging country markets is relatively low compared to the rest of the world B. Business managers are more corrupt on average than government officials C. Corruption among public officials and in business transactions is widespread across the world D. Bribery occurs most often in the automotive industry, the drug and pharmaceutical industry and in the apparel industry E. The ethically "cleanest" industries are public works contracts and construction, the arms and defense industry and the oil and gas industry

38. (p. 328) The consequences of pursuing a strategy which has unethical or shady components include A. Sharp drops in the stock prices of companies found to be engaging in unethical behavior B. Frequently devastating hits to the company's reputation C. Incurring potentially large fines for companies found to have engaged in unethical behavior D. A potential of criminal indictments and jail sentences for company executives E. All of the above

39. (p. 328) One of the biggest reasons for company managers to craft ethical strategies is A. The importance of not embarrassing company shareholders B. The scandals, fines, hits to a company's reputation and consequences for executives that come from C. Being put in the public limelight for unethical behavior C. The imperative of having a strategy that fully complies with the company's code of ethics D. The requirement for every company's strategy to pass the moral scrutiny of the company's board of directors E. So that they can escape the anguish of feeling guilty should their company be called on the carpet for engaging in actions/behaviors that some parts of society believe are "out of bounds."

40. (p. 328) The major drivers of unethical managerial behavior include A. Greed, atheism, pervasive managerial immorality and a general lack of scruples on the part of top executives regarding how customers and suppliers should be treated B. Ethically corrupt corporate cultures and overzealous or obsessive pursuit of wealth accumulation, power, status and other selfish interests C. Widespread managerial belief in the ethical relativism school of thinking D. An aversion to ethical correctness on the part of top executives and a belief that unethical behavior is unimportant and probably won't be discovered E. Intense competitive pressures

41. (p. 328) Unethical managerial behavior tends to be driven by such factors as A. The pervasiveness of immoral and amoral businesspeople B. Overzealous pursuit of personal gain, wealth and other selfish interests C. A company culture that puts the profitability and good business performance ahead of ethical behavior D. Heavy pressures on company managers to meet or beat earnings targets E. All of these

42. (p. 328) Which one of the following is not one of the major drivers of unethical managerial behavior? A. Intense competitive pressures B. Overzealous pursuit of personal gain, wealth and other selfish interests C. A company culture that puts the profitability and good business performance ahead of ethical behavior D. Heavy pressures on company managers to meet or beat earnings targets E. The pervasiveness of immoral and amoral businesspeople

43. (p. 333) The stance a company takes in dealing with or managing ethical conduct at any given point in time can take such basic forms as A. The unconcerned or non-issue approach, the damage control approach, the compliance approach and the ethical culture approach B. The amoral approach, the immoral approach and the ethically-principled approach C. The ethically incorrect approach, the ethically correct approach and the socially responsible approach D. The noncompliance approach, the compliance approach, the public interest approach and the cultural norm approach E. The empowered employee approach, the cultural values approach and the authoritarian approach

44. (p. 333) Which of the following is not a stance a company can take in dealing with or managing ethical conduct at any given point in time? A. The unconcerned or non-issue approach B. The damage control approach C. The socially responsible approach D. The ethical culture approach E. The compliance approach

45. (p. 334 - 336) The unconcerned or non-issue approach to dealing with or managing ethical conduct A. Is prevalent at companies whose executives ascribe to the view that trying to enforce ethical standards above and beyond what is legally required is a non-issue because businesses are entitled to conduct their affairs in whatever manner they wish so long as they comply with the letter of what is legally required B. Is perfectly suited for ethically-principled companies where company personnel are highly accustomed to behaving in an ethical fashion (because at such companies, ethical behavior is mostly a non-issue) C. Is favored at companies whose managers fear scandal and are desirous of containing any adverse fallout from claims of unethical actions by company personnel D. Is favored at companies whose managers are moral and have ethically upstanding reputations E. Is appropriate for companies who have a deeply-planted ethical culture

46. (p. 336) The damage control approach to dealing with or managing ethical conduct A. Is prevalent at companies whose executives are moral and want to put on a public face of being ethically-principled B. Is perfectly suited for ethically-principled companies where company personnel are highly accustomed to behaving in an ethical fashion (because at such companies any ethical lapses are easily subject to damage control) C. Is favored at companies whose managers are wary of scandal and adverse public relations fallout that could cost them their jobs or tarnish their careers D. Is appropriate for companies whose managers are highly concerned about having ethically upstanding reputations E. Is well-suited for companies with no history of ethical problems

47. (p. 336) Which of the following is not accurate as concerns the damage control approach to dealing with or managing ethical conduct? A. The damage control approach is well-suited for companies with no history of ethical problems B. Pany executives that practice the damage control approach are prone to look the other way when ady or borderline behavior occurs—adopting a kind of "See no evil, hear no evil, speak no evil" stance (except when exposure of the company's actions put executives under great pressure to redress any wrongs that have been done) C. Damage control approach is favored at companies whose managers are wary of scandal and adverse public relations fallout that could cost them their jobs or tarnish their careers D. Panies that practice the damage control approach often have a code of ethics that exists mainly as nice words on paper, but company personnel do not operate within a strong ethical context— there's a notable gap between talking ethics and walking ethics E. Executives at companies that practice the damage control approach are prone to making token gestures to police compliance with codes of ethics; they also rely heavily on all sort of "spin" to help extricate the company or themselves from claims that the company's strategy has unethical components or that company personnel have engaged in unethical practices

48. (p. 336 - 337) The compliance approach to dealing with or managing ethical conduct A. Is perfectly suited for ethically-unprincipled companies where company personnel must be spurred into complying with the company's ethical standards B. Is favored at companies whose managers (1) lean toward being somewhat amoral but recognize the value of having ethically upstanding reputations or (2) are moral and see strong compliance methods as the best way to impose and enforce ethical rules and high ethical standards C. Is favored at companies whose managers fear scandal and want to put on a public face of being ethical; they like having some compliance methods in place so they can give the appearance of trying to be ethical (although they are deliberately lax in pushing compliance and punishing unethical conduct) D. Is favored at companies whose managers are immoral but who see having cosmetic compliance methods in place as a safeguard against scandal E. Is perfectly suited for companies that have had a code of ethics for 10 years or more and that want to spend little top management time exhorting company personnel to be ethical in the actions and behavior

49. (p. 337) The ethical culture approach to dealing with or managing ethical conduct A. Is favored at companies where top managers are very concerned about gaining employee buy-in to the company's ethical standards, business principles and corporate values and see the company's code of ethics and/or its statement of corporate values as integral to the company's identity and ways of operating B. Works well in companies desirous of pursuing light ethics compliance C. Is favored at companies whose managers want to maintain the appearance of an ethical culture to help shield the company from scandal, adverse publicity and possible unethical conduct on the part of company personnel D. Is favored at companies whose managers are amoral yet highly concerned about maintaining the appearance of being ethically upstanding E. Is perfectly suited for companies that have had a code of ethics for 10 years or more and that want to spend little top management time exhorting company personnel to be ethical in the actions and behavior

50. (p. 337) Which one of the following is not a key trait of the ethical culture approach to dealing with or managing ethical conduct? A. The ethical culture approach is favored at companies where top managers are very concerned about gaining employee buy-in to the company's ethical standards, business principles and corporate values and see the company's code of ethics and/or its statement of corporate values as integral to the company's identity and ways of operating B. The ethical culture approach makes little use of either a code of ethics or ethics compliance procedures C. There are strong peer pressures from coworkers to observe ethical norms D. Compliance procedures need to be an integral part of the ethical culture approach to help send the message that management takes the observance of ethical norms seriously and that behavior that fall outside ethical boundaries will have negative consequences E. The integrity of the ethical culture approach depends heavily on the ethical integrity of the executives who create and nurture the culture

51. (p. 334 - 337) Which of the following statements is false as concerns the various approaches company managers can take in dealing with or managing ethical conduct? A. Companies that adopt a compliance mode usually do such things as making the company's code of ethics a visible and regular part of communications with employees, having ethics training programs, appointing a chief ethics officer or ethics ombudsperson, giving guidance to employees on ethics matters, instituting formal procedures for investigating alleged ethics violations, conducting ethics audits to measure and document compliance and giving ethics awards to employees for outstanding efforts to create an ethical climate and improve ethical performance B. Companies using the damage control approach usually make some concession to window- dressing ethics, going so far as to adopt a code of ethics (so their executives can point to it as evidence of their ethical commitment should any ethical lapses on the company's part be exposed) C. One of the weaknesses of the compliance approach is that moral control resides in the company's code of ethics and in the ethics compliance system rather than in an individual's own moral responsibility for ethical behavior and in strong peer pressures for ethical behavior D. The main objective of the compliance approach is to protect against adverse publicity and any damaging consequences brought on by headlines in the media, outside investigation, threats of litigation, punitive government action or angry or vocal shareholders E. Companies using the unconcerned or non-issue approach ascribe to the view that ethics has no place in the conduct of business and that companies should not be morally accountable for their actions

52. (p. 336) One of the big difficulties and challenges that a company encounters in using the "damage control" approach to dealing with or managing ethics-related issues and ethics conduct is A. Writing a code of ethics that looks strong but is really pretty weak in terms of ethical principles B. Credibility problems with stakeholders and susceptibility to ethical scandal C. A proliferation of ethical rules and guidelines to avoid public scandal D. That the locus of moral control is shifted to individual employees E. How to discreetly signal employees that the company's code of ethics will be lightly enforced if at all

53. (p. 336 - 337) One of the big difficulties and challenges that a company encounters in using the "compliance" approach to dealing with or managing ethics-related issues and ethics conduct is A. Writing compliance procedures that look strong but really are pretty weak in terms of pushing people to observe the espoused ethical standards B. Inability to deter inherently immoral company personnel from breaking the rules C. A proliferation of ethical rules and guidelines and an environment where employees come to rely on the existing rules for moral guidance—a condition that fosters a mentality of what is not forbidden is allowed D. That the locus of moral control is shifted to individual employees and away from top management E. Being clever in signaling employees that the company's code of ethics is mere window-dressing and that employees should not expect that top executives will "walk the talk" and actually practice what they preach

54. (p. 337) One of the big difficulties or challenges that a company encounters in using the "ethical culture" approach to dealing with or managing ethics-related issues and ethics conduct is A. Relying too heavily on peer pressures and cultural norms to enforce the espoused ethical standards and underutilizing compliance enforcement procedures B. The lack of strong compliance procedures to deter morally corrupt company personnel from deliberately flaunting cultural norms and engaging in unethical behavior C. Overemphasizing the creation of a work climate where everyone is an ethics watchdog and whistle-blowing is required D. That the locus of moral control is the company's code of ethics E. Greater susceptibility to ethical scandal

55. (p. 338) A company that is concerned about the recent raft of corporate scandals and aggressive enforcement of anticorruption legislation (such as the Sarbanes-Oxley Act of 2002) might well be inclined to shift it's a approach to dealing with or managing ethics-related issues and ethics conduct A. From an "ethical culture" approach to a "damage control" approach B. From an "unconcerned/nonissue" approach to a "damage control" approach C. From an "compliance" approach to a "damage control" approach D. From a "damage control" or an "unconcerned/nonissue" approach to a "compliance" approach E. From an "damage control" approach to a "ethical culture" approach

56. (p. 338) A company's strategy needs to be ethical because A. Of the dangers that top management will get embarrassed if the company's unethical behavior is publicly exposed B. A strategy that is unethical in whole or in part is morally wrong and reflects badly on the character of the company personnel involved C. Everyone is an ethics watchdog and somebody is sure to blow the whistle on the company's unethical behavior D. Of the risks of getting caught and prosecuted by governmental authorities if an unethical strategy is used E. Unethical strategies are inconsistent with or else weaken the corporate culture

57. (p. 338) Which of the following represents a justifiable reason for why a company's strategy should be ethical? A. .An unethical strategy reflects badly on the character of the company personnel involved B. A strategy that is unethical in whole or in part is morally wrong C. Pursuing an unethical strategy damages a company's reputation and can have costly consequences D. An ethical strategy is good business and is in the best interest of shareholders E. All of these